Music major BMG, owned by German media giantBertelsmann, reported record profitability and an organic revenue gain of8.1 percent for 2024 on Monday. Revenue grew 6.4 percent on a reported basis to963 million ($1.04 billion), fueled by the successful execution of itsBMG Nextstrategy, strong organic growth, and content investments in the music publishing and recorded music sectors.

Digital revenue jumped 16 percent, accounting for 68 percent of total revenue, up from 63 percent in 2023. That was driven primarily by streaming, the company said.

The companys adjusted operating earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by37 percentto265 million($287 million). The EBITDA margin also reached an all-time high of28 percent(previous year: 21 percent), it highlighted.BMG achieved record profitability and its strongest ever financial results due to the outstanding work of its artists and songwriters and the success of its BMG Next strategy. In its recorded music segment, BMG touted notable success with the release of classic catalog titles by George Harrison and Bryan Ferry, alongside new releases from Lainey Wilson, Sum 41, Mustard, Travis, Crowded House, and Rita Ora, who hosted the MTV EMAs for the third time in 2024, adding: The company also released newly discovered earliest recordings of Spanish flamenco guitarist Paco de Luca and his brother Pepe. Kylie Minogue celebrated her 10th number 1 album on the U.K. charts withTension II. In the same week, country sensation Jelly Roll topped the Billboard 200 for the first time with his albumBeautifully Broken. The company signed new label deals with high-profile artists, including country superstar Blake Shelton, Mustard, YG, New Kids on the Block, Chace, K. Michelle, and The Script.

In music publishing, BMG highlight he success of such songwriters as DMile, Pashanim, and Blossoms, also mentioning that BMG writers account for a majority share of Eminems Houdini, one of the years biggest streaming hits and contributed to 13 songs from Beyoncs global chart-topping albumCowboy Carter,with The-Dream winning a Grammy forAlbum of the Year. And the firm noted that Bruno Mars set a new Spotify record for monthly listeners, driven by the global hit Die With A Smile, his duet with Lady Gaga, which became the fastest song to reach 1 billion streams on the platform.

OurBMG Nextstrategy has been instrumental in driving a successful 2024 with a step-change performance in a fast-evolving music market, said BMG CEO Thomas Coesfeld. Building on the strong performance of our artists and songwriters, ongoing go-to-market improvements, such as insourcing digital distribution, and continued high investment into our people, catalog acquisitions and technology development, we achieved an incredible 2024.

BMG on Monday also touted that it invested approximately500 million ($540 million)in catalog acquisitions and signings during the 2024 financial year. The company further strengthened its high-quality rights portfolio through the strategic implementation ofBoost, the targeted investment program of its parent company Bertelsmann, purchasing24 catalogsduring the reporting period and bringing total investments since the programs inception in 2021 to over1 billion ($1.08 billion), it added.

As part ofBMG Next, the company said it made significant changes to its global distribution go-to-market strategy, including direct licensing agreements with Spotify and Apple Music, while transitioning its physical distribution management to Universal Music Group. At the same time,a focus on a global where possible, local where needed approach across catalog recordings, sales, marketing, distribution, and other areas have strengthened service and accountability to artists and songwriters while enhancing operational efficiency across both the publishing and recorded music businesses, BMG said.